Out of 1,000 people in Britain surveyed by Whistl, an amazing 61.4% subscribe to Amazon Prime. Amazon is popular but that seems a staggeringly high market penetration. Other popular subscriptions were revealed to be: Graze (12.3%), nextunlimited (9.7%), ASOS Premier (8.8%), Pact Coffee (8.5%) and Glossybox (7.8%).
As a country Whistl estimate that we fork out approximately £2bn every year on delivery subscription services and it shows no signs of slowing as the type of subscriptions on offer continues to grow, alongside their popularity.
The study revealed that both convenience (45%) and value for money (60%) were they key drivers behind them although 1 in 5 of those signed up to a subscription admitted to not making use of the benefits that come from the service.
In turn, loyalty to such subscription services and those offering them is high amongst some consumers, as the findings highlighted that one in five Brits refuse to shop with retailers who do not offer them and almost half (48.9%) admit to buying items they wouldn’t have otherwise bought if they hadn’t had the subscription service.
Online merchants should consider two takeaways from the survey findings. Firstly that Amazon Prime is deeply rooted in the UK and if your products aren’t eligible for Amazon Prime, either through FBA or seller-fulfilled Prime, then it really is something you should strongly consider. Once a consumer signs up for Prime there is a tendency to ignore products which aren’t Prime eligible even if they cost slightly more.
Second is to partner with marketplaces that offer subscription services of which there are many including NotOnTheHighStreet and Yumbles On Amazon there is a subscribe and save programme although products are invariably supplied by Amazon which may mean considering Amazon Vendor rather than selling as a merchant. Seller on Notonthehighstreet offer subscriptions for sellers specialising in gifts, sellers on Yumbles can offer food subscriptions.
Don’t forget your own website either! If you have products which are likely to attract repeat purchases then offering a small discount to attract regular repeat orders via a subscription is a bit of a no brainer.